https://www.taxtmi.com/caselaws?id=326510 Mineral oil sludge settling in storage tanks was treated as residue or waste, not a manufactured product, so it fell outside the Central Excise Tariff and was not excisable. On the CENVAT issue, Rule 3(3) of the CENVAT Credit Rules, 2002 was held inapplicable because the material cleared was sludge at the bottom of the tank, not an input removed as such; accordingly, no proportionate reversal of credit was required. The demand, penalty, and interest were therefore unsustainable, and the assessee obtained consequential relief. en-us Fri, 26 Feb 2016 00:00:00 +0530 Sat, 05 Nov 2016 16:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=326510 Mineral oil sludge settling in storage tanks was treated as residue or waste, not a manufactured product, so it fell outside the Central Excise Tariff and was not excisable. On the CENVAT issue, Rule 3(3) of the CENVAT Credit Rules, 2002 was held inapplicable because the material cleared was sludge at the bottom of the tank, not an input removed as such; accordingly, no proportionate reversal of credit was required. The demand, penalty, and interest were therefore unsustainable, and the assessee obtained consequential relief. Case-Laws Central Excise Fri, 26 Feb 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=326510